Connected Vehicle data for UBI: Roundtable hosted by Ford/Redtail at The Motor & Mobility Event, 15/06/2022.
Ford Europe has appointed REDTAIL their reseller and technical partner to bring data-driven motor insurance to new markets. Together we hosted a roundtable attended by luminaries from Broker, Insurance and Underwriting. Our discussion focused on Connected Vehicle data for UBI. In particular, do consumers want it and, if so, how do insurers achieve it optimally for all?
Below are the key talking points and outcomes from the discussion:
1) Do consumers want this stuff?
- Do consumers wish to be contacted by their insurers, and if so what about?
- Views varied on both the best brand (Auto OEM, Insurer?) to offer the communication, the insurance offering, the consumer journey and motivation
- Clearly, the connected insurance approach starts with consent for driver journey data to be used in this way
- This will be new to many (do consumers know their car is ‘connected’?), so the process must be transparent and seamless. What is the right message and tone of voice?
- Must be right for the particular consumer: money for some, emotional pull on safety and the environment for others. Also, gamification would aid take up
- For the industry, focus should be on making things quicker/better, especially with an online journey. Furthermore, of use Connected Vehicle UBI data to analyze risk and produce a premium very quickly
2) If so, how do we achieve scale
- Insurers do not wish to engage with multiple OEMs and APIs. Insurers look to a single hub, like REDTAIL, for their connected insurance data
- OEM data needs translating by REDTAIL into formats that insurers understand and value
- How can connected vehicle/data become universally available and accepted? With onus on Insurtech to do the early grunt work to prove the technology and value
- Discussion on costs. Inevitably some haggling between OEM, insurer and Telematics (REDTAIL in this case) to deliver a sustainable business model with ROI for all
3) And with scale, what should the proposition be?
- Obsess with the consumer. The means must be congruent with the ends.
- The means: the clarity and simplicity of the sign-up and purchase journey
- The ends: the benefit in terms of an analysis of risk per mile resulting in a fairer premium
- Insurers need a Risk Dashboard to enable clear communication with the policyholder from the insurer or fleet manager
- Also, timely provision of telematics data can enable an appropriate response to a policyholder in the event of an incident and claim
4) Who/what will get us there?
In conclusion, it was recognized that it would be the innovative, nimble Insurtechs that will pave the way. Would have the appetite to test ideas. From pay per mile to driver feedback to premium reduction. Aiding learning and ROI development. Certainly, an imperative for the insurer to give the policyholder something back.
For the OEMs, and in particular Ford, care must be taken to ensure that for every dollar spent on the vehicle, the customer gets something out of it.
Lastly, all present were unanimous in believing that Connected Vehicle data for UBI and the Ford/REDTAIL initiative is a good and vital development in delivering fairer motor insurance for all.
